EIT Knowledge and Innovation Communities  – uncovering the major impacts of a 15-year experiment – POLITICO

Finally, EIT InnoEnergy is recognised globally as the most active sustainable energy investor and one of the largest cleantech investors. It boasts 200+ portfolio companies in areas like energy storage, transport, renewables and sustainable built environments, which have collectively raised €25 billion from public and private sources.

The success of these three EIT partnerships is not by accident.
Building on the thematic expertise of each KIC, the EIT’s steering strategy has from the beginning guided these communities toward maximum impact – and eventual financial independence.

For example, the EIT has a requirement that its funding for creating innovation networks must leverage private funding: partners must make meaningful financial and non-financial commitments to participate in EIT KICs. This directs EIT funding specifically toward cooperation, ensures projects are market-driven from the start and accelerates the leverage of the EIT’s funding so that public funds are efficiently spent. In turn, EIT KICs can source, take equity and help scale the most successful innovations that grow both with their value to citizens and their market share. Added to that, revenue from these investments return back into the KICs.

Paths to financial sustainability

While the EIT’s overall steering process is similar for each KIC, it also considers the specifics of the sector. For example, innovation in the energy sector is quite different from in the digital, healthcare or raw materials sectors. And each KIC has taken a slightly different path in generating both impact and sources of funding.
EIT InnoEnergy has become a unicorn in its own right, valued at over $1 billion, and has a self-funding focus centered on private equity investment – a major achievement and validation of the EIT model. They recently announced a financing round of €140 million from private partners – income that it will reinvest into its public mandate.

The financial sustainability of EIT Climate-KIC revolves around a systems-innovation-as-a-service model, in which it employs its vast amount of experience in climate innovation to help complex systems such as cities make the transition to a zero-carbon future.
EIT Digital’s income streams come from private equity, partnership and tuition fees for its in-demand education programs. Along this success, EIT Digital is providing €4 million in scholarships during 2024-28.

The EIT KIC’s ability to become financially sustainable also reflects the significant expertise and network each KIC wields, which have enabled them to become important EU service providers.
EIT Climate-KIC was chosen by the European Commission to coordinate the Net Zero Cities Project, under Horizon Europe, bringing together 33 city networks, research organizations and urban stakeholders from 13 countries for the EU’s Mission to deliver  100 Climate-Neutral and Smart Cities by 2030.

Another example is the pan-European UNITE program, which is transforming healthcare through digital deep tech innovation. For this, EIT Digital has brought together an outstanding consortium of innovation authorities in “Regional Innovation Valleys”.

Finally, EIT InnoEnergy’s Skills Institute, which includes the European Battery Alliance Academy, will train, reskill and upskill approximately 800,000 workers by 2025. In addition, it will build on this to operate the European Solar Academy under the Net Zero Industry Act, helping the EU to achieve its climate neutrality targets.

The EIT and its first three KICs are pioneers. Beyond the remarkable standalone achievements, they have paved the way for the EIT’s six other KICs, highlighting proven paths and solutions.

Building on this success, the EIT Community continues to grow. A new KIC, EIT Water, will be the tenth innovation partnership. Set to be launched in early 2025, it will focus on the water, marine and maritime sectors and ecosystems. The EIT has already delivered immense impact for Europeans. Fifteen years ago, the EU made a bold decision by creating the EIT, an experiment that has had a major return. More bold decisions like this will be needed to advance Europe’s competitiveness and pave the way toward a sustainable future.